Mexico City, September 10, 2010. Mexicana Airlines (CMA) today announced that the Concurso Mercantil petition, initially filed on August 2, 2010, was accepted by the 11th Civil District Judge on Tuesday, September 7.

The objective of the Concurso Mercantil ―as insolvency proceedings are referred to in Mexican law― is to restructure costs and secure financial viability. Tuesday’s decision marked the beginning of the conciliation phase and, pursuant to the procedures stipulated by law and at the proposal of the Department of Communications and Transportation, the judge approved the appointment of Mr. Javier Christlieb Morales as administrator of Mexicana Airlines. Mr. Christlieb Morales assumed his duties on September 8.

Also at the behest of the Department of Communications and Transportation, in its capacity as the granting authority, Mr. Gerardo Badín Cherit’s appointment as arbitrator was approved by the judge. Mr. Badin Cherit will be responsible for facilitating restructuring agreements between the company and its creditors.

This ruling and the actions stemming from it will no doubt lay the foundations for the future of Mexicana Airlines.

Mexico City, August 27, 2010. Nuevo Grupo Aeronáutico, S.A. de C.V. (“Grupo Mexicana”) announced this morning that as a result of the group’s delicate financial situation when it changed owners a week ago, compounded by failure to reach agreements that would allow for the capitalization of its three airlines, Mexicana Airlines, MexicanaClick and MexicanaLink flights will suspend operations until further notice as of midday (12:00 p.m.) on Saturday, August 28, 2010.

Among the factors that have contributed to this announcement are:

1. Grupo Mexicana’s fragile financial situation, which has deteriorated further over the last four weeks due to the previous management’s decision to suspend ticket sales, forcing the company to continue operating in the interests of passengers without receiving any revenue.
2. No substantial agreements were reached to give companies in the Group long-term viability.
3. Lack of effectiveness in the insolvency (Concurso Mercantil) process intended to protect additional financial resources available to the company so it could to continue operating.
4. Given the uncertainty of the situation, certain suppliers have begun demanding advanced payment of services that are essential to the airlines’ operations.

Today’s decision is a painful one for the 8,000-strong Grupo Mexicana family, but we will continue seeking out ways of securing the company’s long-term financial viability, so our passengers can once again enjoy the quality services they are accustomed to. We hope to be back in the air soon and would like to thank everyone involved in this process for their support and understanding.

If you have bookings or/and have paid for a Grupo Mexicana flight and have a reservation code, we would like to inform you that:

1. All Mexicana, MexicanaLink and MexicanaClick flights will be suspended until further notice as of midday on Saturday, August 28, 2010. All flights programmed to depart after this hour will be canceled.
2. Grupo Mexicana deeply regrets any inconvenience this decision may cause and will continue to assist passengers to the full extent of its abilities. Passengers who have already flown a leg of their journey and who are scheduled to fly with a Grupo Mexicana airline after Saturday, August 28, 2010 are advised to consult the websites or contact us at the numbers listed below. Priority will be given to minors traveling unaccompanied, passengers traveling with children under age 3 and special needs passengers.
3. If you have not yet begun your journey, we recommend you make alternative travel arrangements.
4. For information on how to apply for a refund, visit mexicanainforms.com (Tickets issued in the United States and Canada - Tickets issued in Mexico and the Rest of the World), or contact us at any of the numbers listed below:

5448-8634
5998-5998
in Mexico City

01800-837-6150
01800-801-2010
from anywhere in Mexico

1-888-882-9994
1-877-801-2010
from the U.S. or Canada

In other countries please contact the local Mexicana office.

Please note that no destinations will be canceled as a result of the changes scheduled to come into effect tomorrow, although fewer flights will be available on certain routes.

In the interests of passengers, Grupo Mexicana and its employees are making every effort to ensure the company continues operating. Grupo Mexicana regrets and apologizes for any inconvenience these changes may cause passengers.

Should you require further information, we suggest you visit www.cmainforms.com, our www.mexicana.com link or contact us on twitter @mexicanaair.

The following flights will be suspended as of tomorrow. Please note that although fewer flights will be available on these routes, they will remain operational:

###

August 12, 13, 14, 15 and 16
Flight MX 375: Mexico City – Caracas
Flight MX 374: Caracas – Mexico City

As far as possible, Mexican Airlines will be reinstating flights previously suspended in the interests of passengers.

We will continue to make every effort keep flight and itinerary changes to a minimum so as to cause as little inconvenience as possible to passengers. Should you require further information, visit www.cmainforma.com or our www.mexicana.com link.

Mexico City, August 10, 2010. Nuevo Grupo Aeronáutico (Grupo Mexicana) today reported on the progress of negotiations with its pilots’ (ASPA) and flight attendants’ (ASSA) unions aimed at securing the financial viability of Mexicana Airlines (CMA) and guaranteeing its continued existence.

During talks with union representatives, Grupo Mexicana stated that it is willing to accede to the following measures, which would take effect immediately:

1. Pilots and flight attendants would be entitled to a share of the capital stock of Grupo Mexicana -the holding for Mexicana Airlines, MexicanaClick and MexicanaLink- and related companies such as MexicanaLoyalty and MexicanaMRO, proportionate to contributions made to the company by unions in their collective labor contracts.
2. A complementary investment group would be invited on board to provide Mexciana Airlines with the capital injection it needs to continue operating and secure its financial viability. This group would also be entitled to a share of the company’s capital stock. Prospective investors are currently being sought out.
3. Stockholders would be willing to dilute their share participation as necessary to save Mexicana Airlines, which serves some 11 million passengers a year, and the livelihoods of the group’s 8,000-plus employees.

Over the last 10 days, talks between Grupo Mexicana and its unions have made considerable progress. Grupo Mexicana acknowledges that its employees are vital to a long-term solution and would like to take this opportunity to extend them its support and solidarity.

Given the airline’s cash flow problems and precarious financial situation, time will be a determining factor. However, the fact that the company’s unions have agreed to revise collective contracts in the interests of cost efficiency is a major step toward financial viability that will benefit not only employees and passengers in the long term, but Mexico’s commercial aviation industry in general.

Grupo Mexicana would like to make it known that each and every one of its employees, both unionized and non-unionized, are making unprecedented sacrifices to ensure passengers booked on flights reach their destinations.

Flight and itinerary changes can be consulted at www.cmainforma.com or at our www.mexicana.com link. Every effort will be made to keep these to a minimum so as to cause as little inconvenience to passengers as possible.

Mexico City, August 8, 2010. Mexicana Airlines today announced that its financial situation has deteriorated substantially in the last week due to a series of events that have strangled the cash flows the airline needs to finance its day-to-day operations. One such event was IATA’s decision to suspend the carrier’s BSP sales channel, forcing it to suspend the sale and issuing of tickets indefinitely, with serious repercussions for MexicanaClick and MexicanaLink sales. Other sources of revenue have either dried up or are being retained by financial institutions following the company’s recent decision to file bankruptcy proceedings.

Consequently, Mexicana Airlines will be forced to cancel certain flights over coming days to optimize available resources and ensure that priority is given to homebound passengers.

Updated information on route and flight changes over the next few days will be posted on cmainforma.com, our mexicana.com link and twitter @mexicanaair.

Mexicana Airlines apologizes for any inconvenience these changes may cause passengers and would like to remind you that our staff are on hand to assist you at the call centers listed below. Priority will be given to unaccompanied minors, passengers traveling with children under age 3 and special needs passengers.

Although flights will be reduced to a minimum over coming days, the airline and its employees are determined to make an effort to continue operating out of concern for passengers. It is hoped an agreement will be reached with union leaders and that additional resources can be obtained to secure the financial viability of the carrier.

If you are planning on traveling by air in the immediate future, Mexicana Airlines suggests you consider alternatives, where possible.

Call Centers

• Mexico City: 5448-8634 or 5998-5998
• Elsewhere in Mexico: 01800-837-6150 or 01800-801-2010
• United States & Canada: 1-888-882-9994 or 1-877-801-2010

To avoid saturating our call centers, these telephone lines are reserved exclusively for passengers booked on Mexicana Airlines flights. Please have your reservation code handy when calling.

• THE COMPANY’S PETITION TO FILE INSOLVENCY PROCEEDINGS HAS BEEN ADMITTED, INITIATING THE INSOLVENCY PROCEDURES. 
• A SERIES OF INJUNCTION RELIF MEASURES HAVE BEEN DECREED TO TEMPORARILY PREVENT CREDITORS FROM EXERCISING THEIR RIGHTS OVER COMPAÑÍA MEXICANA DE AVIACIÓN’S OUTSTANDING DEBT OBLIGATIONS.

Mexico City, August 5, 2010. Today, a District Judge of Mexico City published the admission decree to the Concurso Mercantil petition filed by Compañía Mexicana de Aviación (CMA) on August 2, legally initiating the insolvency petition process aimed to restore CMA’s viability. In order for CMA to continue operations and to protect the Company, passengers and its creditors, a series of temporary injunction relief measures have been granted to prevent creditors from exercising their rights over the CMA’s outstanding debt obligations. Such measures are subject to negotiations with CMA’s creditors and unions.

We would like to remind passengers that MexicanaClick and MexicanaLink operate independently of CMA, and are therefore unaffected by this process.

Compañía Mexicana de Aviación would like to reaffirm its commitment to its customers, business partners and employees. For regular updates on the progress of negotiations and the restructuring process please visit www.mexicana.com, or follow us on Twitter: @mexicana_com

Mexico City, August 4 2010. Compañía Mexicana de Aviación (CMA) announced that as of 6:00 p.m. central time today all ticket sales will be suspended and that no tickets will be issued until further notice.

The decision affects only Companía Mexicana de Aviación ticket sales. MexicanaClick and MexicanaLink are independent carriers and will therefore continue to sell and operate domestic flights as normal through mexicana.com and all traditional channels.

This decision will allow CMA to convey with certainty that domestic flight sales will continue as normal through MexicnaClick and MexicanaLink.

Compañía Mexicana de Aviación will continue to operate its international flights in the interests of:

• Protecting passengers who have already purchased flights.
• Ongoing union negotiations in the hope of a positive outcome.

Compañía Mexicana de Aviación would like to take this opportunity to state that it remains committed to its customers, commercial partners and employees. For regular updates, or domestic ticket sales please visit mexicana.com or contact us on Twitter @mexicanaair.

• The proceedings will give Compañía Mexicana de Aviación (“CMA” or “the Company”) time to restructure its liabilities in an orderly manner and bring its cost structure, particularly labor costs, into line with market conditions.
• CMA will continue to operate normally, pursuant to Mexican legislation.
• Passengers can rest assured flights and itineraries will not be affected as part of the reorganization process.
• CMA reassures its passengers that safety and that of its operations will remain its highest priority.
• Only CMA has filed for insolvency proceedings. Click and Link, CMA’s sister domestic market airlines, operate independently of CMA and will therefore not be affected by the reorganization process.

Mexico City, August 3, 2010. On August 2, CMA filed a “Concurso Mercantil” or insolvency petition with a Mexico City district court to ensure the continued operation of the Company. Likewise, a Chapter 15 petition was filed with a New York bankruptcy court in order to obtain bankruptcy protection and injunction relief in both countries.

The “Concurso Mercantil” is a Mexican legal resource that guarantees the operation of companies that are unable to meet their obligations, while protecting those companies they do business with. Similar to Chapter 11 of the United States Bankruptcy Code and other similar legislations, this recourse grants companies a reasonable timeframe in which to reorganize themselves in an orderly manner while continuing to operate.

Passengers will not be affected as part of the proceedings, since CMA will continue to render services normally while it restructures its liabilities and brings its costs into line with market conditions. Likewise, Click and Link’s operations will not be affected as these airlines are independent of CMA, and therefore independent to the proceedings.

CMA costs, particularly those associated to flight crews are well above industry average; such costs must be brought into line with market conditions to allow the Company to reach a restructuring agreement with its creditors in order to secure its financial viability well into the future.

Since changing hands in 2006, CMA has made aggressive efforts to boost productivity by expanding and renewing fleet, enhancing its route network, as well as introducing state of the art technologies. These measures have translated into improved operating efficiency, savings in excess of US$800 million and has contributed resources superior to US$350 million.

Although these initiatives helped offset a sharp drop in demand for air services due to the global financial crisis and the AH1N1 flu epidemic of 2009, the Company’s current cost structure makes it financially non-viable. Consequently, CMA is negotiating new collective labor contracts with its unions, and is confident they will result in a positive outcome enabling the Company to continue offering its customers world-class services at competitive fares.

Under Mexican law, once the insolvency filing has been accepted, the judge will order the Company to continue operating to ensure services are not interrupted and that consumers are not adversely affected. The judge will also appoint an expert to oversee the proceedings up to the conciliation phase, during which CMA will attempt to reach a restructuring agreement with its creditors.

CMA remains committed to its customers, commercial partners and employees, and will keep all parties updated on the progress of such restructuring process.